Pride comes before a fall for the German labour market, warns Dr. Norbert Walter, chief economist of Germany’s biggest bank, Deutsche Bank. Less than 8% unemployment in a country that until recently was looked upon as the sick man of Europe: Germany’s labour market has turned into the star performer on the international stage. However, wage costs are high and businesses are groaning under their weight. One million short-time workers provide sufficient proof of this. If the wage increases agreed next year are similar to those in 2009, then the worst still lies ahead for Germany. The economist says the country would be better advised to use the crisis to provide employees with further training and shelve wage increases until the economy is back on track.
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